DreamWorks Animation Doubles Q4 Profit on One-Time Tax Break

Studio reports $85.2 million in profit for the three-month period, thanks largely to the valuation allowance for its deferred tax assets

DreamWorks Animation reported $85.2 million in profit for the fourth quarter ended Dec. 31, nearly double the $43.6 million it rang up for the same period in 2009.

Company officials attributed the uptick to a one-time valuation allowance for deferred tax assets.

The Glendale, Calif.-based company's revenue in the quarter rose 42 percent to $275.7 million.

With CEO Jeffrey Katzenberg noting to investors that DreamWorks is the first studio to release three CG-animated films in a single year, the company generated $26.6 million in the fourth quarter off the least successful of the three, "Megamind," primarily through sales of consumer products.

"How to Train Your Dragaon," meanwhile, yielded $80.3 million, primarily from sales of 7.5 million DVD and Blu-ray sets.